Maximize Tax Write-Offs by Tracking Donations

We make donations primarily because we want to do good, but it’s also nice to know you may get a tax write off. But too often we neglect or completely forget to take that write off because it just seems too complicated to track, especially when it’s not cash. It doesn’t need to be. Here’s how to track your charitable donations.

Miles driven in service of a charitable organization can be deducted at 14 cents per mile. If you want an app that just tracks mileage, there are plenty to choose from like MileTracker, MileIQ or TripLog.

If the cash or item value is more than $250, you’ll need written acknowledgement from the organization showing amount, description of contribution, and stating whether goods or services were provided in exchange for the gift.

If you did receive a benefit, like free theater tickets in exchange for a cash donation, then take your donation and subtract the fair market value of the benefit. That is the amount you can legally deduct.

Look for a trusted valuation guide to help you determine the fair market value of your donation. Salvation Army has a great one to get you started.

Clothing and household items typically need to be in good (used) condition or better to be considered deductible.

Keep in mind only qualified organizations count. In other words, just because you donated to someone’s Kickstarter or GoFundMe campaign, does not mean it’s tax deductible. If the project is affiliated with a non-profit organization it may be deductible.